Jefferies (JEF) Gains But Lags Market: What You Should Know
Jefferies (JEF) closed the most recent trading day at $39.70, moving +0.53% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Coming into today, shares of the investment banking and capital markets company had gained 4.61% in the past month. In that same time, the Finance sector gained 4.46%, while the S&P 500 gained 5.64%.
Investors will be hoping for strength from Jefferies as it approaches its next earnings release. On that day, Jefferies is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 48.39%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, down 30.94% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.40 per share and revenue of $5.26 billion, which would represent changes of +0.89% and -13.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Jefferies should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.59% lower. Jefferies is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Jefferies is currently trading at a Forward P/E ratio of 11.63. This valuation marks a premium compared to its industry's average Forward P/E of 9.86.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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